SENATE, No. 1583

STATE OF NEW JERSEY

INTRODUCED OCTOBER 3, 1996

By Senator MARTIN

An Act concerning certain punitive damages, amending P.L.1986, c.105 and supplementing Title 59 of the New Jersey Statutes.

    Be It Enacted by the Senate and General Assembly of the State of New Jersey:

    1. Section 5 of P.L.1986, c.105 (C.34:19-5) is amended to read as follows:

    5. Upon a violation of any of the provisions of this act, an aggrieved employee or former employee may, within one year, institute a civil action in a court of competent jurisdiction. Upon the application of any party, a jury trial shall be directed to try the validity of any claim under this act specified in the suit. All remedies available in common law tort actions shall be available to prevailing plaintiffs. These remedies are in addition to any legal or equitable relief provided by this act or any other statute. The court may also order:

    a. An injunction to restrain continued violation of this act;

    b. The reinstatement of the employee to the same position held before the retaliatory action, or to an equivalent position;

    c. The reinstatement of full fringe benefits and seniority rights;    d. The compensation for lost wages, benefits and other remuneration;

    e. The payment by the employer of reasonable costs, and attorney's fees;

    f. Punitive damages, except if the defendant is a public entity; or

    g. An assessment of a civil fine of not more than $1,000.00 for the first violation of the act and not more than $5,000.00 for each subsequent violation, which shall be paid to the State Treasurer for deposit in the General Fund.

(cf: P.L.1990, c.12, s.4)

    2. (New section) Notwithstanding the provisions of any other law, no punitive damages shall be awarded against a public entity in any action.

    3. This act shall take effect immediately.

STATEMENT

    This bill would prohibit the award of punitive damages in all lawsuits against public entities. It would also specifically prohibit punitive damage awards against public entities in cases brought against them pursuant to the "Conscientious Employee Protection Act."

    In Abbamont v. Piscataway Board of Education, 138 N.J. 405 (1994), the New Jersey Supreme Court held that a board of education was liable for punitive damages in a case filed by a teacher under the "Conscientious Employee Protection Act" (N.J.S.A.34:19-1 et seq.). This bill would prohibit the award of punitive damages against public entities in all actions, including the Act.

    It is the belief of the sponsor that punitive damage awards against public entities serve no legitimate purpose. Unlike punitive damage awards against individuals, which punish wrongdoers for outrageous conduct and serve to deter others, punitive damage awards against public entities have little deterrence value. Rather than punishing the wrongdoer, punitive damage awards against public entities serve mainly to punish the public, since such awards are paid with public funds.

    Prohibits award of punitive damages against public entities.